New Honda may be produced in Ohio

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Posted 9:24AM on Monday, January 7, 2002

COLUMBUS, Ohio - Honda of America Manufacturing isn't saying yet where it will build its new car model designed for younger buyers. But that isn't stopping analysts from weighing in. Honda spokesman Ron Lietzke declined to speculate about the company's production plans. He did say Honda's Ohio plants, in East Liberty and Marysville northwest of Columbus, are capable of producing what for now is known as "Model X." The vehicle is expected to combine features of a pickup truck and a sport-utility vehicle and to cost less than $20,000. The model is based on the Ohio-built Honda Civic, so it would make sense to build it in Ohio or at Honda's plant in Canada, where the Civic also is produced, said James Hall, vice president of AutoPacific Inc., an industry consulting company. "At this point, all indications are it will be built in North America and most likely in East Liberty," said Jeff Schuster, an analyst with J.D. Power and Associates. Unlike many other automakers, Honda has a flexible manufacturing system that allows it to retool without shutting down. "That allows us a lot of latitude to introduce different products in our plants," Lietzke said. Both of Honda's Ohio auto plants are operating at capacity, which means the company would need to make shifts in production if the new vehicle is made in the state. No jobs are likely to be created if that's what the company ends up doing. Honda employs 13,000 people at the two Ohio car plants, a motorcycle facility in Marysville and an engine plant in Anna. The Model X concept was introduced last year in a concept car with doors that open from the center and an interior designed to accommodate people, mountain bikes, surf boards and other bulky sports equipment. Honda research and development officials conducted informal focus-group evaluations of the vehicle at colleges, beaches and campsites. "Model X radically departs from the traditional automotive design and thinking in a way that resonates with a younger audience," said Dick Colliver, Honda executive vice president. Honda said it hasn't determined how many vehicles will be produced initially. The East Liberty plant made 236,029 Civics last year -- 71 percent of the 331,780 Civics sold in the United States -- while the Marysville plant produced 88 percent of the 414,718 Accords sold domestically. Accords also are made in Mexico and Japan, while Civics are produced at 11 other plants worldwide.